Unemployment During COVID-19

Article updated on 02/04/2020

The COVID-19 crisis is having unprecedented repercussions on our economy. Many people have lost their jobs. This very stressful situation can cause anxiety and distress leading to sleep and health problems. What steps can you take to maintain your personal finances in times of crisis?

Coping with the crisis

While it may be easier said than done, the first step is to stay positive and not let yourself get overwhelmed by the situation. Here are some tips to help you get through this difficult time:

1. Set a short-term budget
It’s time to save money during this time of isolation. To do so, focus on the most important expenses such as groceries, pharmacy, rent and living expenses. Cut back on non-essentials (outings, gym, clothing, transportation, etc.).

2. Find out about the assistance available to you
The federal and provincial governments have introduced numerous measures to assist citizens who have lost their jobs and become unemployed as a result of COVID-19.

The federal government has introduced the new Canada Emergency Response Benefit (CERB) of $2,000 per month (4 weeks) for up to 16 weeks.

For its part, Quebec has introduced the Temporary Aid for Workers Program (TAWP COVID-19) which provides financial assistance to meet the needs of workers who are in isolation due to the COVID-19 virus.

This is the time to call your bank and all your creditors to negotiate some relief during the crisis. In fact, six major Canadian banks have taken steps to support their customers affected by COVID-19. As of March 25th, Desjardins Group had already received more than 10,000 requests for relief from customers for its financial products.

Do the same for all your loans, such as your car and other loans. Don’t be afraid to call your creditors. They will understand the current situation and will be more willing to provide you with relief during this time of crisis.

You can also defer paying your income taxes and the second instalments on your municipal taxes in some cities, like Montréal and Québec City, for example.

4. File your tax returns more quickly
Don’t wait to file your tax return. If you’re entitled to a refund, this will help you receive your money sooner. If you’re entitled to credits and allowances, this will also prevent them from being suspended.

5. Talk about it
You’re going through a very difficult situation. It’s important to talk to your family or loved ones about it. Don’t keep it to yourself. Don’t be ashamed to confide in them. It can happen to anyone. Getting help and encouragement will help you through this difficult time and help you cope better.

If you prefer, you can also turn to a confidential telephone listening and support service like TEL-AIDE (514-935-1101) or 1-866-APPELLE (277-3553).

6. Take care of yourself
Also, try to think about other things so that you don’t give in to the stress of the situation. Don’t read too much news, try to focus on what makes you happy, such as activities you enjoy doing for yourself or with your children. Treat yourself to simple pleasures that don’t cost anything, like listening to music, taking a long, hot bath or reading.

Lastly, try to stay positive despite the current situation and remember the winning strategies you’ve used in the past to get through a difficult time.